Union Cabinet on Wednesday gave its nod to NDA government's flagship 100 smart cities project and the new urban renewal mission with a total outlay of about Rs one lakh crore.

A meeting chaired by Prime Minister Narendra Modi approved Smart Cities Mission for development of 100 smart cities and Atal Mission for Rejuvenation and Urban Transformation (AMRUT) of 500 cities with outlays of Rs 48,000 crore and Rs 50,000 crore respectively, according to a statement issued by the Urban Development Ministry.

Smart City is Prime Minister Narendra Modi's pet project aimed at recasting the urban landscape of the country by making cities more livable and inclusive besides driving the economic growth.

Each selected city under the ambitious scheme would get central assistance of Rs 100 crore per year for five years. AMRUT is the new avatar of the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) and has been named after former Prime Minister Atal Bihari Vajpayee.

The Cabinet also approved central funding under AMRUT to the projects sanctioned under JNNURM and not completed.

JNNURM projects sanctioned during 2005-2012 and which have achieved physical progress of 50 per cent availing 50 per cent of central assistance released and those sanctioned during 2012-2014 will be supported till March 2017.

Accordingly, 102 and 296 projects respectively will get central support for balance funding to complete these projects. Smart City aspirants will be selected through a 'City Challenge Competition' intended to link financing with the ability of the cities to perform to achieve the mission objectives.

Each state will shortlist a certain number of smart city aspirants as per the norms to be indicated and they will prepare smart city proposals for further evaluation for extending central support.